Document Content

DECREE No

DECREE No.38/1998/ND-CP OF JUNE 9, 1998 DETAILING THE IMPLEMENTATION OF THE ORDINANCE ON THRIFT PRACTICE AND WASTEFULNESS COMBAT

THE GOVERNMENT

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to the Ordinance on Thrift Practice and Wastefulness Combat of February 26, 1998;

At the proposal of the Minister of Finance,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- The subjects of thrift practice and wastefulness combat shall include:

1. Organizations which use State budget, including:

a) Administrative and non-business agencies;

b) Armed force units.

2. Organizations which are provided with State budget funds for their operation:

a) The Communist Party of Vietnam;

b) Socio-political organizations, including: the Vietnam Fatherland Front, the Vietnam Labor Confederation, the Ho Chi Minh Communist Youth Union, the Vietnam War Veterans' Association, the Vietnam Women's Union and the Vietnam Peasants' Association.

3. Social organizations and socio-professional organizations which are partly provided with operating funds by the State budget in accordance with the Law on the State Budget.

4. State enterprises.

5. Economic establishments of political organizations, socio-political organizations, social organizations, socio-professional organizations, people's armed force units, administrative and non-business agencies, which use State budget funds.

6. Every citizen has the obligation to practice thrift and combat wastefulness in production and consumption so as to save capital for development investment, for his/her own interests and the national interests.

Article 2.-

1. The system of norms, criteria and regimes to serve as basis for thrift practice and wastefulness combat must satisfy the following requirements:

a) Being complete, synchronous and specific in all domains defined in Article 1 of the Ordinance on Thrift Practice and Wastefulness Combat;

b) Being issued according to the defined competence.

2. It is strictly forbidden to issue and implement norms, criteria and regimes which are contrary to the regulations.

Article 3.- The State management agencies shall, within their respective functions, tasks and powers, have to elaborate, issue and publicize the proceeding and procedures for handling affairs; the regulation on inspection and supervision of the observance of the proceeding and procedures in the management and use of the State's capital and property in order to practice thrift and combat wastefulness.

The organizations shall have to base themselves on the management regulations and proceeding set by the competent State agency(ies) to elaborate and issue the management proceeding, the regulation on internal inspection and supervision in service of thrift practice and wastefulness combat activities and in compatibility with their working conditions and requirements.

Article 4.-

1. Organizations shall have to strictly comply with the regulation on financial transparency prescribed by the Prime Minister.

The financial transparency must ensure the exercise of the mastery by the people, cadres, State officials and employees, the supervision by the institutions and mass organizations according to their respective competence defined by the law.

The content, scope and extent of the financial transparency must be accurate, clear, timely and addressed to right subjects.

2. The regulations on financial transparency include:

a) The regulation on transparency of State budget at all levels;

b) The regulation on financial transparency with regard to units drafting State budget estimates;

c) The regulation on financial transparency with regard to State enterprises;

d) The regulation on financial transparency with regard to funds with revenues from people's contributions.

Chapter II

SPECIFIC PROVISIONS ON THRIFT PRACTICE AND WASTEFULNESS COMBAT

Section 1. TO PRACTICE THRIFT AND COMBAT WASTEFULNESS IN THE USE OF THE STATE BUDGET'S REGULAR EXPENDITURES

Article 5.-

1. The establishment, merger, division or splitting of organizations and the adjustment of the geographical boundaries of administrative units must be associated with the actual needs, ensure the socio-economic efficiency, national defense and security, be decided by the competent State agencies and fully economical and against wastefulness.

2. The decisions on the establishment, merger, division or splitting of organizations, which are contrary to current regulations, must be immediately suspended under decisions of the competent State agency(ies); and at the same time, the financial agency shall suspend the allocation of budget funds for the execution of above-mentioned decisions.

The persons who have made decisions contrary to the regulations shall, depending on the nature and seriousness of the violation, be dealt with according to law.

3. The division or splitting of an organization must not lead to any increase of its payroll and wage fund; in cases where it is really necessary to increase its payroll and wage fund, it shall have to obtain the approval from the competent State agency.

Article 6.-

1. Organizations that are allocated wage funds by the State budget shall have to strictly comply with the regulations of the competent State agency(ies) on payrolls and wages.

The labor recruitment must be transparent in terms of recruitment demand, criteria and conditions to be met by recruits.

2. The regime of package wage payment shall be applied to the organizations that meet the following conditions:

a) Having stable functions and tasks assigned by the competent State agencies;

b) Having elaborated the titles and standards of their officials and employees;

c) Having their stable payrolls assigned and/or approved by the competent State agency(ies).

After fulfilling its assigned tasks, an organization enjoying the regime of package wage payment shall be entitled to use the amount of savings from its wage fund to supplement the incomes of its officials and employees.

The Ministry of Finance shall guide the application of package wage payment to organizations that fully meet the prescribed conditions.

3. It is strictly forbidden to use labor and wage fund in excess of the approved quotas.

4. Persons who have made decisions on recruitment and use of laborers, professional skill upgrading, professional grade transfer or promotion, which are not appropriate to the work requirements and contrary to the regulations, shall have to cancel such decisions and, depending on the nature and seriousness of their violations, be disciplined or examined for penal liability according to law; if wastefulness is caused, compensation must be made for the damage, including:

a) Wages paid to the recruited laborers;

b) Expenses for retraining of laborers before they are transferred to other jobs;

c) Rewards, social insurance, medical insurance (if any);

d) Other related expenses.

Article 7.- The procurement and use of travel means as well as other facilities, equipment and assets (hereafter collectively referred to as equipment) in organizations are stipulated as follows:

1. The procurement and use of equipment in organizations shall comply with the norms, criteria and regimes prescribed by the competent State agencies.

2. The prices serving as basis for controlling the levels of expense for equipment procurement shall be the average prices on the market at the time of procurement.

3. The procured equipment must be home-made products, except for the following cases:

a) Equipment which have not yet been manufactured in the country;

b) Home-made equipment, though being of the same quality, category and use specifications as compared to foreign-made equipment, have higher prices. Such higher price levels shall be specified for each period by the Ministry of Finance.

c) Home-made equipment, though being of the same prices as compared to foreign-made equipment of the same category, are of poorer quality and use specifications.

4. The procurement of equipment subject to bidding must be conducted in accordance with the Regulation on Bidding prescribed by the competent State agency.

5. The Prime Minister shall prescribe the norms, criteria and regime for the use of cars.

6. The Ministry of Finance shall prescribe the norms, criteria and regime for the procurement and use of other equipment.

Article 8.-

1. Organizations shall have to use and regulate internal travel means for right purposes and according to the prescribed norms, criteria and regime, so as to ensure the performance of their assigned tasks.

2. The Ministry of Finance shall summarize and report to the Prime Minister the situation on the travel means in the administrative and non-business agencies as well as socio-political organizations in order to make transfers from the over-equipped units to under-equipped units in accordance with the provisions of law.

Article 9.- Individuals who violate stipulations in Articles 7 and 8 of this Decree shall, depending on the nature and seriousness of their violations, be disciplined in the form of reprimand, warning, wage lowering, professional grade demotion, dismissal from position or from work; or examined for penal liability as prescribed by law; if damage is caused, compensation must be made.

The compensation shall be made in form of lump-sum indemnity with personal property within 30 days from the date the decision on indemnity is issued; If a violator is incapable of making lump-sum indemnity, the compensation shall be deducted from his/her monthly income, but must not be lower than 10% and higher than 30% of the gross income from his/her monthly wage and allowances (if any).

Article 10.-

1. The sending of officials and employees on working missions must be made according to plans and working requirements, for right purposes and with efficiency.

The payment of working mission allowances must comply with the norms, criteria and regime prescribed by the competent State agencies and be included in the approved annual budget estimates.

2. If persons sent on working missions did not go to the designated working venues or failed to perform their assigned tasks, they shall have to bear all expenses incurred. Those who falsify invoices and vouchers to get working mission allowances shall be disciplined and have to reimburse the sum of money they have already received.

3. The norms, criteria and regime of allowances for working missions inside the country must ensure that the persons sent on such working missions can pay all necessary expenses for meals, accommodation and travel at the average cost of living levels during their working missions, with the distinctive characteristics of mountainous areas, islands and deep-lying and remote areas being taken into account.

The Ministry of Finance shall define the norms, criteria and regime of allowances for domestic and overseas working missions, and guide the package assignment of working mission allowances to organizations.

Article 11.-

1. Conferences must be organized with clear determination of their contents, number of participants, time and venues. Conferences with impractical contents should not be organized.

2. The national conferences of branches (except for professional training courses) must be permitted by the Prime Minister; conferences organized by the provinces or cities directly under the Central Government must be permitted by the presidents of the provincial/municipal People's Committees.

Each conference shall not last for more than three days, each professional training course shall not last for more than seven days.

3. The expenses for organizing a conference shall include: expenses for hiring the conference hall, printing of documents, drinks; expenses for means of transporting delegates from their lodgings to the conference venue; meal allowances for participants and other necessary expenses.

The funds for organizing conferences shall be incorporated in the approved annual budget estimates.

It is strictly forbidden to use conference funds for organizing parties and receptions or presenting gifts in any forms or for purposes other than those prescribed.

4. The Ministry of Finance shall stipulate the norms, criteria and regime of conference expenses.

Article 12.- On the basis of the approved annual State budget estimates, the regime of package assignment of working mission allowance and conference expenses shall be applied, so that organizations may take initiative in managing and economically using the State budget.

Organizations shall be entitled to estimate and use the saved amounts of money thank to the application of package assignment of working mission allowance and conference expenses to cover other practical needs in order to raise the management efficiency. The use of such saved amounts must comply with the current quotas and norms and must be reported to the finance agency of the same level.

Article 13.-

1. Expenses for guest receptions and festive occasions must be incorporated in the approved annual budget estimates.

2. Liquors, beer and cigarettes must not be used in guest receptions (except for some cases of receiving foreign guests where specific regulations shall apply).

3. The expenses for reception of and gifts to Vietnamese and foreign guests must comply with the norms, criteria and regime of expenses for guest reception prescribed by the Ministry of Finance.

Article 14.-

1. The celebration of branches' founding anniversaries shall be organized in a thoroughly economical and practical manner, without making any show-off or formalism.

2. The celebration of branches' founding anniversaries, on national or provincial scale, shall be organized only once every five years if they are deemed really necessary and approved by the Prime Minister or the presidents of the provincial People's Committees.

3. The Ministry of Finance shall prescribe the norms, criteria and regime of expenses for organization of branches' founding anniversaries.

Article 15.-

1. The ceremonies for receiving emulation titles, orders and medals must be organized together with the occasions of anniversaries or conferences of units and organizations and in a simple and economical way, without making any show-off and formalism.

2. The norms, criteria and regime of expenses for organizing ceremonies for receiving emulation titles, orders and medals shall comply with the conference expense regime.

3. It is strictly forbidden to use public funds and State budget allocations to organize receptions for participants therein.

Article 16.-

1. Basing themselves on the distinctive characteristics of their respective branches and work domains, the Minister of Defense and the Minister of Public Security shall promulgate the regulations on thrift practice applicable to special expenditures in the fields of national defense and security.

2. The Ministry of Defense and the Ministry of Public Security shall have to coordinate with the Ministry of Finance in inspecting and closely supervising the thrift practice within their respective branches and periodically reporting to the Prime Minister on the special expenditures.

Section 2. TO PRACTICE THRIFT AND COMBAT WASTEFULNESS IN INVESTMENT AND CONSTRUCTION

Article 17.- The approval of investment planning and plans and the allocation of investment capital must ensure the socio-economic efficiency and suit the capability of the economy.

All investment projects shall be approved only when they are included in the general planning ratified by the competent levels.

All decisions to invest in projects, which are neither included in the general planning nor approved by the competent levels, fail to meet the prescribed conditions or fail to comply with the investment proceedings and procedures, shall be suspended and the final settlement of such projects shall not be made.

Article 18.-

1. The decisions to invest in projects that use State capital shall be made after the comprehensive study of construction planning; architectural and technological options; plans for use of land and natural resources; socio-economic efficiency; ecological environment protection; financial needs and other social aspects, so as to ensure that the projects are feasible and can meet the set requirements.

2. Any person who makes a wrong investment decision or a decision to invest in a project that fails to yield socio-economic efficiency as required, thus causing waste shall, depending on the nature and seriousness of the violation, be dealt with according to law.

Any organizations and/or individuals that falsely evaluate an investment project and consequently make a wrong investment decision shall have to take joint liability and be dealt with according to law.

Article 19.-

1. The elaboration, evaluation and approval of technical designs of investment projects shall comply with the construction standards and the economic-technical norms set by the competent State agency(ies) and ensure the socio-economic efficiency and protect the ecological environment.

2. Organizations and/or individuals that violate the regulations on elaboration, evaluation and approval of technical designs of investment projects, thus causing waste shall have to make compensation therefor and be dealt with according to law.

Article 20.-

1. The evaluation and approval of the total cost estimates and project cost estimates of investment projects must strictly comply with the approved technical designs, the economic-technical norms and standards and unit prices set by the competent State agency(ies).

2. Organizations and/or individuals that violate the regulations on evaluation and approval of the total cost estimates and project cost estimates of investment projects, thus causing waste shall have to make compensation therefor and be dealt with according to law.

Article 21.-

Biddings must be organized for investment projects which are subject thereto. The bidding for project construction must strictly comply with the Government's Regulation on Bidding.

2. Organizations and/or individuals that violate the regulations on project construction bidding thus causing waste shall have to make compensation therefor and be dealt with according to law.

Article 22.-

1. The organizations and/or individuals that are construction contractors shall have to strictly observe the technical designs, the economic-technical norms and standards, the set construction tempo, the total cost estimates, cost estimates or the approved bid winning prices.

2. The investors and/or project owners shall have to supervise the construction and make the inspection upon the completion of project units and the whole projects in order to ensure strict observance of technical designs, norms, approved cost estimates, and take responsibility for the volume and quality of construction already inspected and accepted.

3. Organizations and/or individuals that violate the regulations on construction activities, construction supervision and inspection upon the completion of projects, thus causing waste shall have to make compensation therefor and be dealt with according to law.

Article 23.-

1. Organizations and/or individuals that allocate capital to the investment projects shall have to ensure the set time table, work volume completed, conformity with the approved designs and cost estimates, and to inspect and supervise the use of the allocated capital.

2. The competent organizations and/or individuals that allocate capital at variance with the regulations on management of construction investment capital, thus causing waste or loss to the State's capital and property shall have to make compensation therefor and be dealt with according to law.

Article 24.-

1. Upon the completion of construction projects, project units and investment projects, the final settlement of their construction investment capital must be made according to regulations. For a project which is to be constructed in many years, the annual settlement of construction investment capital for the construction volume already done in that year shall be made.

2. Organizations and/or individuals that fail to comply with the regulation on payment for the construction volume already done and on the settlement of construction investment capital, thus causing waste, shall have to make compensation therefor and be dealt with according to law.

Section 3. TO PRACTICE THRIFT AND COMBAT WASTEFULNESS IN THE MANAGEMENT AND USE OF LAND, WORKING OFFICES, PUBLIC HOUSES

AND NATURAL RESOURCES

Article 25.-

1. The assignment and lease of land must comply with the legislation on land and the legislation on thrift practice and wastefulness combat.

2. Organizations and/or individuals that assign and/or lease land ultra vires or in excess of the prescribed norms, criteria and regime, thus causing waste, shall have to make compensation therefor and shall be dealt with according to law.

3. Organizations and/or individuals that have been assigned or leased land but fail to use land for the right purposes or have not used it shall be dealt with according to law.

Article 26.-

1. Working offices, public houses and other architectural works which belong to public assets must be used for the right purposes and according to the prescribed norms, criteria and regime.

2. Working offices must not be leased out or turned into business or service establishments or residential houses or used for purposes other than those prescribed.

3. Organizations and/or individuals that violate the regulations on management and use of working offices, public houses and/or other architectural works shall be dealt with according to law; the proceeds from the illegal use of such assets must be remitted into the State budget.

4. The Prime Minister shall prescribe the norms, criteria and regime of use of working offices and other architectural works by organizations.

Article 27.-

1. The management and exploitation of natural resources must comply with the provisions of law. The competent State agencies shall, within their respective functions and tasks, have to conduct regular inspection and supervision thereof; and promptly suspend the natural resource prospection, exploitation and use which are contrary to the regulations, and cause waste as well as pollution to the ecological environment.

2. Organizations and/or individuals that violate the regulations on management, exploitation and use of natural resources, thus causing waste, shall have to make compensation therefor and be dealt with according to law.

Section 4. TO PRACTICE THRIFT AND COMBAT WASTEFULNESS IN THE MANAGEMENT AND USE OF CAPITAL AND PROPERTY AT STATE ENTERPRISES

Article 28.-

1. The State enterprises shall have to strictly observe the financial regime in the management and use of capital and property, management of expenses and turnover, and the regime of income distribution, cost-accounting, accountancy and statistics as prescribed by law.

2. Basing themselves on the system of economic-technical norms and expenditure criteria and regime set by the competent State agency(ies), the State enterprises shall issue norms, criteria and regime of administrative expenditures, expenses for guest receptions, meetings and transactions in the enterprises and report them to the State financial agency.

Article 29.- The State enterprises shall have to apply the wage regime and the income distribution regime in accordance with the State's regulations.

Persons who make decisions on labor recruitment, wage payment and income distribution at variance with regulations shall have to make compensation. The compensation shall be made in accordance with Clause 4, Article 6 of this Decree.

Article 30.-

1. The procurement and use of travel means and other facilities, equipment and assets in service of the managerial and executive work in the State enterprises must strictly comply with the norms, criteria and regime prescribed by the State.

Any procurement and use of equipment beyond the prescribed norms, criteria and regime shall be handled in accordance with the provisions of law.

2. The general directors, directors or authorized persons, who decide the procurement and equipment of travel means and administrative management facilities of the enterprises, or decide financial expen-ditures at variance with the regulations, thus causing waste, shall have to make compensation therefor and shall, depending on the nature and seriousness of their violation, be handled according to law.

Article 31.- The setting up and use of funds at State enterprises must comply with regulations of the competent State agency(ies). It is strictly forbidden to set up illicit funds. All illicit funds must, when being detected, be recovered and remitted into the State budget.

Persons who decide the setting up of illicit funds shall be handled according to law.

Section 5. TO PRACTICE THRIFT AND COMBAT WASTEFULNESS IN PRODUCTION AND PEOPLE'S CONSUMPTION

Article 32.-

1. The Ministry of Culture and Information shall build good models for the organization of traditional festivals, weddings, funerals and other cultural activities in a thoroughly thrifty, healthy and civilized manner and preserve the fine customs and practices as well as the nation's cultural identity, in order to mobilize the entire people to follow such models and create the public opinion in favor of the good models and against phenomena of wastefulness and those contrary to the fine customs and practices.

2. The People's Councils and the People's Committees at all levels shall base themselves on the set models, the conditions and circumstances of their respective localities to guide the grassroots authorities to coordinate with mass organizations in mobilizing people to elaborate and observe conventions on organization of traditional festivals, weddings, funerals and other cultural activities; to closely monitor and direct such campaign in their respective localities.

Article 33.-

1. The State agencies shall have to coordinate with the Vietnam Fatherland Front and its member organizations in organizing and mobilizing their cadres, officials, employees and people to practice thrift and combat wastefulness according to the set models, the regulations and conventions on organization of traditional festivals, weddings, funerals and other cultural activities.

2. The leading cadres, State officials and employees shall have to be exemplary in following the set models, observing regulations and conventions on organization of traditional festivals, weddings, funerals and other cultural activities, as already guided, and mobilize the people to follow, so as to create a mass movement nationwide.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 34.-

1. The ministries, the ministerial-level agencies, the agencies attached to the Government, the People's Councils and People's Committees at all levels, State enterprises and other organizations that use State budget allocations shall have to observe the regulations on thrift practice and wastefulness combat and guide their attached units in strictly observing the regulation on financial transparency. The heads of organizations that have been assigned to manage and use the State's capital and property shall have to personally practice thrift and combat wastefulness.

2. The organizations that use the State budget allocations and manage and use the State's capital and property shall have to elaborate programs and adopt measures to practice thrift and combat wastefulness within their respective units.

3. The competent State agencies shall have to inspect, supervise, detect and promptly handle violations of the regulations on thrift practice and wastefulness combat as prescribed by law.

Article 35.-

1. The ministries, the ministerial-level agencies, the agencies attached to the Government, the People's Councils and the People's Committees at all levels shall have to coordinate with the Vietnam Fatherland Front and its member organizations in organizing, educating and mobilizing the people to practice thrift and combat wastefulness; supervising the organizations' and individuals' observance of the State's regulations on thrift practice and wastefulness combat.

2. Mass media agencies shall have to propagate and mobilize the people to observe the State's regulations on thrift practice and wastefulness combat; follow the set models and observe regulations and conventions on organization of traditional festivals, weddings and funerals and other cultural activities; propagate examples of good people and good deeds in thrift practice and wastefulness combat; to combat and condemn acts of wastefulness in production and consumption.

Article 36.- Organizations and/or individuals that fail to observe or improperly observe the State's regulations on thrift practice and wastefulness combat shall, depending on the nature and seriousness of their violation, be disciplined, administratively sanctioned or examined for penal liability as prescribed by law; if waste is caused, compensation must be made.

The heads of organizations managing individuals who violate the regulations on thrift practice and wastefulness combat shall have to take joint liability.

Article 37.- Organizations and/or individuals that make achievements in thrift practice and wastefulness combat shall be commended and rewarded in accordance with the State's regulations.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 38.- This Decree takes effect after its signing.

Article 39.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People's Committees at all levels and the heads of the concerned organizations shall have to implement this Decree.

On behalf of the Government

For the Prime Minister

Deputy Prime Minister

NGUYEN TAN DUNG